Copper on the Rise: Investors Benefit Through Shares of Freeport-McMoRan, Power Metallic Mines, and Glencore

Freeport-McMoRan: The Giant is Struggling

Freeport-McMoRan is the world's largest copper producer, excluding the unlisted, state-owned Chilean producer Codelco. However, the US company is still grappling with the aftermath of an accident at its largest mine, Grasberg in Indonesia. In September 2025, a mud rush occurred there, during which masses of mud flooded a tunnel. Freeport had originally planned to gradually restart operations in the affected areas starting in the second quarter of 2026. But the heart of the mine continues to cause problems. As a result, Freeport had to postpone the full restart of production from late 2027 to early 2028 at the beginning of the month. The problem: due to the weeks-long shutdown following the accident, an extremely large amount of groundwater has seeped in, making the ore in the underground area much wetter than expected. Now the ore transport system must undergo extensive modifications and structural adjustments. For the full year 2026, Freeport now expects production of only about 700 million pounds from the Grasberg mine—300 million less than originally planned.

The company's stock is nevertheless performing more than respectably, primarily due to the copper price. The stock has risen by about 50% since the accident in September. Recently, however, it has been trading sideways, with some volatility, reflecting the uncertainty caused by the war in the Persian Gulf. About two-thirds of all analysts recommend buying the stock. However, Freeport's P/E ratio ranges between 20 and 25, depending on the estimate.

Power Metallic Mines: NISK Project with High Copper Grades

Power Metallic Mines is one of the most exciting copper developers in the sector. The Canadian company is advancing the NISK project in the province of Québec, home to what is considered one of the world's highest-grade copper deposits. The project is a classic magmatic sulphide deposit, which means it contains not only copper, but also nickel, cobalt, palladium, and platinum—an attractive combination in the context of critical minerals and geopolitics. Over the past two years, the management team led by CEO Terry Lynch has significantly accelerated exploration activities. In addition to the historical resource, the discovery of the Lion Zone in particular has yielded remarkable results. This zone contains rock with extremely high-grade copper mineralization. By comparison, many active copper mines worldwide operate with grades ranging between 0.5% to 1%. According to S&P Global, average ore grades globally have declined by roughly two-thirds over the past three decades.

In the Lion Zone, however, Power Metallic Mines is encountering grades that are, in some cases, extreme. For instance, during the winter drilling program, drill hole PML 26–095 recently intersected 22 m with 11.46% copper equivalent (CuEq). One section of this drill hole even yielded 8.6% Cu and 18.62% CuEq over 4 m. These are outstanding drilling results, especially since other drill holes also showed high grades of copper and by-metals.

NISK's location is also compelling. The deposit is located in the James Bay region and offers many infrastructure advantages compared to other polymetallic projects in the Canadian North. The property is situated directly on the paved "Route de la Baie-James," a highway connecting the area to the more densely populated southern part of Canada. The regionally significant town of Nemaska is also nearby. Furthermore, in Québec, the region benefits from clean, competitively priced hydroelectric power. The cost per kilowatt-hour there is 4 cents for industrial customers.

Power Metallic Mines currently has a market capitalization of more than CAD 300 million. The shareholder base includes three well-known resource investors: Gina Rinehart, Robert Friedland, and Rob McEwen. Another clear positive, in our view, is that the family of CEO Terry Lynch holds around 18% of the company's shares. In the coming weeks and months, additional drilling results are likely to drive the stock's performance. Currently, six drilling rigs are operating on the project. The stock is suitable for long-term investors who want to capitalize on structural trends in the copper market, such as electrification and AI expansion on the commodities side. The highlight of the year for the company is likely to come in the third quarter, when an updated resource estimate is expected.

Most recently, Power Metallic Mines shares recovered significantly from their yearly low of CAD 1, and an upward trend re-established itself, driving the stock price up by as much as 50%. Analysts are bullish on the stock due to NISK's potential. GBC Research sees a price target of CAD 2.85, and Noble Capital considers prices of CAD 2.30 possible over a 12-month horizon.

Glencore: Well diversified

Investors who do not want to bet solely on copper but are looking for a broader entry into the commodities market are well-positioned with Glencore. The Swiss conglomerate based in Zug is broadly diversified and not only operates its own mines but also runs a globally significant commodities trading business. In addition, Glencore owns its own smelters and processing facilities. In addition to copper, the mining segment also extracts cobalt, zinc, nickel, and coal. Nevertheless, copper is likely to play a more significant role in future growth here as well.

Glencore currently has a geographically diverse portfolio of copper mines. The focus is on the African Copper Belt in the Democratic Republic of the Congo and the Andean regions in Peru and Chile. In the Congo, the company operates two large complexes, Kamoto and Mutande, which mine cobalt as well as copper. Metals rarely come alone. In South America, the Swiss company operates Collahuasi in Chile (44% stake), one of the largest copper mines in the world. Collahuasi is considered the most important growth driver in the portfolio for 2026, as a new seawater desalination plant and optimized ore grades are expected to increase production. In Peru, the company holds two operations: Antamina (33.75% stake) and Antapaccay (100%). With the wholly-owned Lomas Bayas mine in Chile, the company also owns a modern open-pit mine in the Atacama Desert that produces copper cathodes on-site via heap leaching.

Glencore's stock has recently been a real standout on the market. Following a difficult and loss-ridden 2024, investors regained confidence. In euro terms, the stock has doubled since the beginning of 2025 and is currently at a four-year high. For the past year, the group paid out approximately USD 2 billion in dividends. In addition, a share buyback program has been underway since August 2025. In addition to copper, rising coal prices are likely supporting the stock at present. Furthermore, there is recurring speculation about a merger with Rio Tinto. It is known that four merger attempts have officially failed over the past two decades. Most recently, negotiations were broken off in February.